AFC leads $100m financing of Itana’s first digital economic zone in Africa

Business a.m. Reporter

Itana, the Nigerian digital economic zone management company, is getting support in the form of project development funding from Africa Finance Corporation (AFC), the pan-African infrastructure financing company, to realise a project designed to be Africa’s first digital economic zone, it has emerged. 

An initial first phase is budgeted to cost $100 million and AFC says its support in form of project development fund will see it also lead in the financing of this first phase. Both the AFC and Itana say they are committed to jointly developing the zone.

NEW YORK, United States of America, September 27, 2024/ — Itana (http://apo-opa.co/4dnuip1), Nigeria’s first licensed digital economic zone management company, and Africa Finance Corporation (AFC) (www.AfricaFC.org), the continent’s leading infrastructure solutions provider, have agreed to jointly develop the first

The digital economic zone in Africa, the continent’s first, is designed for global and Pan-African technology, finance and service-based businesses to operate and scale with ease across Africa, unlocking the continent’s digital economy, a statement released over the weekend explained.

Both organisations formalised the partnership during the Global Africa Business Initiative (GABI), on the sidelines of the ongoing United Nations General Assembly (UNGA) in New York in front of global government and business leaders.

An explanatory note made available to Business a.m. further described the Itana Digital Economic Zone in Lagos, Nigeria as intended to be an online jurisdiction that would serve as a gateway to build a global business in Nigeria. 

“Through Itana, companies can remotely incorporate and operate their businesses in the Itana zone, with laws, business incentives (tax, immigration & banking), and services optimised for the digital economy. This will be coupled with eco-friendly live-work districts and a live-in accelerator programme, showcasing the future of African cities and providing the ideal infrastructure and support for businesses in Africa to scale and compete globally,” the statement by both companies further explained.

AFC’s support for the Itana project, which involves project funding and leading financing of the first phase, will include an eco-friendly tech campus in Lagos, Nigeria, and funding of startups in Accelerate Africa, the accelerator programme of Itana in partnership with Future Africa. 

The finance corporation will also support the roll-out of the Itana Digital Economic Zone for global and Pan-African tech, finance, and service-based businesses seeking to operate across Africa.

According to the statement that was released weekend, Itana and AFC are already collaborating alongside Future Africa, PwC Nigeria, and Charter Cities Institute as technical advisers to the Initiative for the Promotion of Digital Free Zones in Nigeria (DiFZIN), a non-profit advocacy and policy research organisation representing the private sector in the recently announced Federal Government of Nigeria steering committee for the establishment of Digital Economic Zones in Nigeria. The committee is chaired by President Bola Tinubu and includes relevant government ministers and agency heads.

Itana will be a conducive environment tailored to the 21st-century digital trade and technological age and it recently launched the Itana Application where individuals can join the community and have access to events and services such as business visa facilitation, local bank accounts, and a curated marketplace of trusted vendors and consultants for doing business in Africa. 

Businesses that meet the criteria can register as a Free Zone Enterprise (FZE) with ease and will receive a Business Operating licence that enables them to do business in Nigeria like numerous digital companies including Reliance Info and Future Africa.

Post-business incorporation, businesses can operate in the zone with tax and capital repatriation incentives, get access to the Itana business community, apply for business banking in the Digital Economic Zone, and special work and residency permits without limitations imposed by expatriate quotas.

“Itana intends to be to Nigeria and Africa what Delaware & Silicon Valley is to the U.S., the DIFC is to Dubai, and e-Estonia is to the European Union,” said Luqman Edu, chief executive officer of Itana. 

“Itana is poised as the gateway to doing business in Africa. Local and international businesses looking to expand their operations across Africa will naturally look to Itana as their point of entry,” Edu added.

“Africa’s digital economy is poised for significant expansion and innovation following the rapid adoption of mobile technology, a burgeoning youth population, and the growing importance of digital commerce and services,” said Samaila Zubairu, president and chief executive officer, Africa Finance Corporation. 

“In support of this, AFC is proud to be a pioneer alongside Itana, in building Africa’s first digital economic zone. This unprecedented initiative marks a pivotal step towards creating a thriving hub for the African digital economy, cementing the Corporation’s commitment to driving innovation, job creation, and sustainable economic development across the continent,” he added.

Last year, Itana announced a funding round backed by leading technology venture capitals and highly influential tech industry leaders including LocalGlobe, Amplo, Pronomos Capital (backed by Peter Thiel), Balaji, and Future Africa (led by Nigerian entrepreneur Iyinoluwa Aboyeji, co-founder of Andela and Flutterwave).

As the first Digital Economic Zone, Itana says it remains committed to making Nigeria a powerhouse in the global digital economy. The proposed zone will be hosted in Alaro City, an integrated, mixed-use city planned on over 2,000 hectares in the Lekki Free Zone.